City Development Limited (CDL) has acquired a 12.4% stake in IREIT Global for $59.4 million and a 50% stake in the trust manager IREIT Global Group (IGG) for $18.4 million.

Listed on the Singapore Exchange, IREIT Global focuses on investing in office, retail and industrial properties in Europe. It currently has five freehold office properties valued at $800 million in its portfolio.

The properties, located in Berlin, Bonn, Darmstadt, Munich and Munster in Germany, have a total net lettable area of 2.16 million sq ft and comprise about 3,400 carpark lots.

The properties have an overall occupancy rate of 98.6%. As at end-December, the weighted average lease expiry is around four years with more than 90% of leases due for renewal only in 2022 and beyond. Tenants include blue-chip companies such as Allianz Handwerker Services GmbH, Deutsche Rentenversicherung Bund, Deutsche Telekom subsidiary GMG and ST Microelectronics.

“This investment in a REIT is in line with our aim to achieve assets under management (AUM) of US$5 billion [$6.8 billion] by 2023,” says Frank Khoo, CDL’s group chief investment officer.

He adds that this deal will also enhance the group’s diversification and increase its presence in European economies such as Germany.